EU Is Split Over Delaying Brexit By as Much as a Year, Diplomats Say
(Bloomberg) -- European Union governments disagree over how long they think the U.K. should delay Brexit, with some pushing for an extension of as much as a year, diplomats said.
While some countries think the EU should offer Britain a generous period to negotiate a deal that will win the backing of Parliament, possibly after a second referendum, others oppose a postponement of any sort and want pressure to be put on the U.K. to accept a deal as soon as possible, according to four EU diplomats.
It's up to the U.K. to request a delay and, so far, Prime Minister Theresa May has said she doesn't intend to. But with the deal the government negotiated with the EU suffering the biggest House of Commons defeat in history last week and little sign there's a majority in favor of any alternative, many officials on both sides believe keeping the U.K. in the bloc beyond its scheduled March 29 exit date is the only plausible way forward.
In Parliament on Monday, when asked to rule out a postponement, May simply said that she's “working to find a deal” so the U.K. “can and will leave the European Union on March 29.”
Any extension needs unanimous approval from the EU's remaining 27 countries.
Read more: May Is Said to Give Up on Cross-Party Talks to Fix Brexit
The EU shouldn't just "extend the agony" of Brexit, Slovak Foreign Minister Miroslav Lajcak told reporters in Brussels on Monday. “If there is a good reason, then yes.”
German Chancellor Angela Merkel -- who is taking a more flexible approach on the timing of any extension -- indicated on Saturday that she wants to help Britain secure an orderly exit. She said it's the EU's responsibility to help find a solution.
“We also have a responsibility to shape this separation process in a responsible way, so that people don't look back in 50 years, shaking their heads, and say why weren't we in a position to make a compromise?” she said.
Elections to the European Parliament in May are the biggest obstacle to any extension. Several countries believe the U.K. should be able to delay Brexit until the start of July when the newly elected assembly sits for the first time.
Other countries believe the U.K. should be given longer, even as much as a year, to nail down a far more detailed blueprint for the future, meaning Britain may have to take part in the EU-wide vote.
Long Extension
France and the European Commission, the EU's executive, are among those pushing for a long extension, said the diplomats, who spoke on condition of anonymity because the discussions are private. Germany takes a flexible approach, although it isn't in the camp pushing for the longest extension.
But several governments think the fast-approaching deadline acts as leverage and the U.K. shouldn't be offered any delay, or only a “technical” one of a matter of weeks, to allow the U.K. Parliament to pass necessary legislation in order to push Britain to accept the existing deal.
Diplomats said the EU is still broadly united on Brexit and the disagreement probably isn't serious enough to block any U.K. request for a postponement, but it does highlight the tension over what the EU strategy should be. The issue could bubble to the surface if leaders are asked to consider a delay.
Some officials in European capitals believe there is still a chance that Britain could change its mind and stay in the bloc after all and the longer it can prolong the negotiation period, the more likely that will become. Others think a line needs to be drawn under the messy talks so that European governments can focus on other matters, such as fighting populism and strengthening the euro area.
How Parliament Can Seize Control of Brexit: A Step-by-Step Guide
Backbench members of Parliament, led by former Attorney General Dominic Grieve, are working on a plan to take control of Brexit out of the government's hands, ultimately giving the chamber the chance to ask the EU to delay the departure day. EU officials said the bloc will wait until the U.K. clarifies its position before making its next move.
--With assistance from Lyubov Pronina and Marine Strauss.
To contact the reporter on this story: Ian Wishart in Brussels at iwishart@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, ;Emma Ross-Thomas at erossthomas@bloomberg.net, Richard Bravo, Tony Czuczka
©2019 Bloomberg L.P.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
-
Medicine Pricing: Where Must Profit Stop?
India must confront excessive margins, hidden incentives and regulatory gaps that threaten the integrity of medicine.